Are you looking for a budget-friendly summer holiday destination that won’t break the bank? Portugal is an excellent choice, offering plenty of options for those looking to save money without sacrificing quality. From the sun-drenched beaches of the Algarve to the historic cities of Lisbon and Porto, there’s something for everyone in Portugal. In this guide, we’ll share some of the cheapest and affordable places in Portugal to holiday in summer.

Where to go in Portugal?

Portugal has something to offer every type of traveler, whether you’re interested in exploring historic sites, relaxing on the beach, or enjoying delicious cuisine. Here are some of the top destinations to consider:

While Porto and Lisbon are two of Portugal’s most popular tourist destinations, there are many other wonderful places to explore in the country that are often overlooked. Here are some reasons why tourists might consider avoiding these cities during peak summer season and seeking out alternative destinations:

Crowds: During the summer months, both Porto and Lisbon can become extremely crowded with tourists, making it difficult to fully enjoy the experience. The streets, restaurants, and attractions can be packed, and lines for popular sites can be long.

Higher Prices: The influx of tourists during the summer months also means that prices for accommodation, food, and other services can be higher than at other times of the year, making it more expensive to travel to these cities.

Heat: Summer in Portugal can be very hot, especially in urban areas like Porto and Lisbon. The combination of high temperatures and crowds can be uncomfortable and even dangerous for some visitors.

Over-tourism: The increasing popularity of Porto and Lisbon has led to concerns about over-tourism, with some locals feeling that their cities are becoming too crowded and losing their character. This can lead to tension between locals and tourists, making for an unpleasant experience for everyone.

Places you should consider to visit in Portugal this summer

Instead, tourists might consider exploring some of Portugal’s more off-the-beaten-path destinations.

There are many beautiful beach towns, charming villages, and scenic countryside areas that offer a more relaxed and authentic experience. Here are some examples of affordable beach towns to consider:

Nazaré: This fishing village on the central coast of Portugal has become popular in recent years due to its giant waves, which attract surfers from around the world. Despite its growing popularity, Nazaré has managed to maintain its small-town charm and affordable prices.

Ericeira: This picturesque town north of Lisbon is known for its world-class surf spots and laid-back vibe. Ericeira has a variety of beaches, from secluded coves to larger stretches of sand, and plenty of affordable restaurants and accommodations.

Comporta: Located south of Lisbon, Comporta is a bohemian beach town with a relaxed atmosphere and beautiful scenery. It’s a great place to unwind and enjoy the natural beauty of Portugal.

Tavira: This historic town in the Algarve region is a hidden gem with a charming old town, lively markets, and beautiful beaches. It’s also one of the most affordable places to stay in the Algarve, making it a great option for budget-conscious travelers.

Prices in Portugal

One of the best things about Portugal is its affordability. Compared to other popular European destinations like France or Italy, Portugal offers excellent value for money. Here are some average prices to give you an idea of what to expect: 

Accommodation

Hostels and budget hotels in Portugal typically cost between €20-€50 per night, while a private villa in the Algarve can cost around €100-€150 per night.

Food and drink

A meal at a budget restaurant will cost around €10-€15 in all over the country, while a glass of wine or beer costs around €2-€3, but it depends, the bigger is the region the higher it the price.

Transportation

A one-way ticket on public transport costs around €1.50, while a taxi ride costs around €0.50 per kilometer.

How to Move to Portugal?

If you’re considering moving to Portugal, there are several things you need to know. Firstly, you’ll need to apply for a residency permit to live in Portugal long-term. You can do this through the Portuguese consulate in your home country. Secondly, you’ll need to consider the cost of living in Portugal, which is generally lower than other European countries.

Where can I find the most affordable beach towns in Portugal?

Portugal is a popular tourist destination known for its stunning beaches and charming coastal towns. However, some beach towns can be quite expensive for both tourists and locals. Fortunately, there are several affordable beach towns in Portugal that offer beautiful beaches, rich culture, and affordable living options.

One of the most affordable beach towns in Portugal is Peniche, located about an hour north of Lisbon. It is a popular destination for surfers and beachgoers due to its long stretches of sand dunes and consistent waves. The town is also home to a historic castle, a charming old town, and plenty of seafood restaurants.

Another affordable option is Vila Nova de Milfontes, situated on the southwest coast of Portugal. It is a small town with a relaxed atmosphere and some of the most beautiful beaches in the country. The town is surrounded by stunning cliffs and natural landscapes, perfect for hiking and exploring. It also offers a variety of restaurants, bars, and cafes with affordable prices.

For those who prefer a quieter lifestyle, Santa Cruz may be the perfect option. This small town is located just 40 minutes from Lisbon and offers a relaxed pace of life with beautiful beaches and natural landscapes. It is also known for its excellent seafood restaurants and traditional festivals.

Finally, there is Monte Gordo, located in the Algarve region in the southern part of Portugal. It offers a wide range of activities, including water sports, golf, and hiking.

The town also has a large pedestrian area with many restaurants, cafes, and bars

with affordable prices.

Where to Live in Portugal

When it comes to choosing where to live in Portugal, there are many factors to consider. Here are some popular areas to consider:

Lisbon: Portugal’s capital city is a popular choice for expats, offering a mix of historic charm and modern amenities.

Algarve: With its sunny climate and stunning beaches, the Algarve is a popular destination for retirees and expats.

Porto: Located in northern Portugal, Porto offers a laid-back lifestyle and affordable cost of living.

Things to Do in Portugal

Portugal offers plenty of activities for visitors to enjoy, from exploring historic sites to soaking up the sun on the beach. Here are some popular things to do in Portugal:

Golf: Portugal is known for its excellent golf courses, making it a popular destination for golf enthusiasts.

Water sports: With its long coastline, Portugal offers plenty of opportunities for water sports like surfing and paddleboarding.